Accountancy, asked by KINGutkarsh, 1 year ago

what is the reason for putting rent for premises on credit side of profit and loss A/C

Answers

Answered by Anonymous

Rent A/c will be recorded in credit side of profit and loss Account Because it was loss..

KINGutkarsh: i am asking for rent for premises,

KINGutkarsh: i know it should be written in credit side but i want to know the reason

KINGutkarsh: do u know

KINGutkarsh: yhe reason

demonsking52801: there is difference between rent and rent for premises

demonsking52801: rent is an expense where as rent for premises is income

KINGutkarsh: okk

Answered by demonsking52801

hello mate

rent for premises has been put up on the credit side of the p&l account because it is a revenue income.

let's get it with a help of an example

like some people do not sell the building rather they put it on the rent for some long period of time like 50 years or something like that. which means given the building on lease. and the rent is already taken at starting only.

hope u get it

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